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New options beckon HNIs investors

business Updated: Jun 15, 2009 23:26 IST
HT Correspondent
HT Correspondent
Hindustan Times
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High net worth individuals (HNIs) in India are looking at increasing the allocation of their investments to sectors such as healthcare pharma and biotech, energy and natural resources and consumer goods in the next 12 months according to a global survey conducted by Barclays Wealth Management.

The survey explores the responses of wealthy investors to the current period of uncertainty.
While 27.80 per cent of the Indian respondents said that they would invest in healthcare pharma and biotech, 24.30 per cent said that they would invest in consumer goods and 22.60 per cent said that they would invest in energy and natural resources.

“The sectoral pick is not surprising really as investors have chosen sectors that are traditionally defensive sectors or growth sectors,” said Satya Bansal, chief executive, Barclays Wealth India.

Of the sectors that HNIs said that they would steer clear of, financial services ranked the highest with 51.3 per cent respondents seeing poor prospects for this sector. It was followed by construction and real estate at 47.80 per cent. Manufacturing though remains a sector that has average prospects in the days to come with 62.60 respondents saying so.

“These sectors are fairly wide and you have to keep in mind that the survey was done over a period of March to May. Also, manufacturing is a lag sector and therefore it would pick up gradually,” said Bansal.

The report reveals that only 22 per cent of respondents from India are confident of better economic growth In India. Investors in UK (45.7 per cent), US (25.20 per cent) and China (28.70 per cent) are more confident on growth in Indian economy than Indian HNIs back home.

“It is interesting to see how much investors outside are feeling confident about India and this kind of confidence could also result in an incremental flow of investments from these countries to India. Since the survey, most of the Indian HNIs would also be as positive as their foreign counterparts in the India story,” said Bansal.

Interestingly as far as policies are concerned, Indian investors were most scathing about the performance of policymakers, despite the region being, relatively speaking, less severely affected by the financial crisis.